Polymetal International plc (POLY)
Polymetal: Q3 2019 production results
24-Oct-2019 / 09:00 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
Release time IMMEDIATE LSE, MOEX, AIX: POLY / ADR: AUCOY
Date 24 October 2019
Polymetal International plc
Q3 2019 production results
Polymetal reports solid production results for the third quarter and nine
months ended September 30, 2019.
"Continued strong performance at Kyzyl is driving our production dynamics.
We now expect to exceed our full-year production guidance", said Vitaly
Nesis, Group CEO of Polymetal.
HIGHLIGHTS
? In Q3, the Company's gold equivalent ("GE") production grew by 7%
year-on-year to 476 Koz driven by Kyzyl contributing 94 Koz. Following the
successful completion of several improvement projects, Kyzyl concentrator
achieved steady-state throughput of 2.0 Mtpa, 11% above the original
design.
? Quarterly gold production gained 13% while silver output contracted by
20% on the back of 2018 asset disposals and planned grade decline at
Dukat.
? GE production for the first nine months of 2019 increased 16% to 1,232
Koz. Polymetal is likely to exceed its full-year production guidance of
1,550 Koz by up to 50 Koz.
? Q3 revenue increased by 43% to US$ 656 million on the back of higher
sales volumes and prices. The seasonal gap between production and sales
has been closed.
? The Company notes cost increases from royalties driven by commodity
prices yet maintains its cost guidance for 2019: TCC of US$ 600-650/GE oz
and AISC of US$ 800-850/GE oz.
? Net Debt of US$ 1.7 billion as of 30 September 2019 remained largely
unchanged compared to 30 June 2019. The Company generated significant free
cash flow and paid a regular semi-annual dividend of US$ 94 million (US$
0.20 per share).
? Construction and development activities at the Nezhda and the POX-2
projects continued on schedule.
? In Q3, Polymetal had its ESG ratings upgraded - MSCI ESG Ratings score
improved from BBB to A, and ISS-Oekom Corporate Rating was raised to C+.
Furthermore, the Company was reaffirmed as a member of the Dow Jones
Sustainability Index and FTSE4Good Index Series.
3 months ended % 9 months ended %
Sep 301, change2 Sep 301, change2
2019 2018 2019 2018
Waste 41.3 33.6 +23% 118.9 94.5 +26%
mined, Mt
Underground 25.9 31.2 -17% 80.2 96.8 -17%
development
, km
Ore mined, 4.5 3.6 +22% 13.0 10.2 +28%
Mt
Open-pit 3.4 2.5 +36% 9.9 6.7 +48%
Underground 1.1 1.2 -7% 3.1 3.5 -11%
Ore 3.9 4.4 -12% 11.5 11.4 +1%
processed,
Mt
Production
Gold, Koz 402 356 +13% 1,005 801 +25%
Silver, Moz 5.4 6.7 -20% 16.4 19.4 -16%
Copper, Kt 0.6 0.9 -36% 2.0 2.5 -21%
Gold 476 447 +7% 1,232 1,066 +16%
equivalent,
Koz3
Sales
Gold, Koz 388 321 +21% 992 766 +30%
Silver, Moz 6.1 5.3 +15% 16.4 17.4 -6%
Copper, Kt 1.0 0.5 +109% 2.0 1.9 +5%
Revenue, 656 459 +43% 1,602 1,248 +28%
US$m4
Net debt, 1,702 1,700 +0% 1,702 1,518 +12%
US$m5
Safety
LTIFR6 0.11 0.07 +57% 0.15 0.13 +15%
Fatalities 0 0 NA 2 1 +1
Notes: (1) Including discontinued operations.
(2) % changes can be different from zero even when
absolute numbers are unchanged because of rounding.
Likewise, % changes can be equal to zero when absolute
numbers differ due to the same reason. This note applies
to all tables in this release.
(3) Based on 1:80 Ag/Au, 5:1 Cu/Au, 2:1 Pb/Au and 2:1
Zn/Au conversion ratios.
(4) Calculated based on the unaudited consolidated
management accounts.
(5) Non-IFRS measure based on unaudited consolidated
management accounts. Comparative information is presented
for 30 June 2019 (for the three months period) and 31
December 2018 (for the nine months period).
(6) LTIFR = lost time injury frequency rate per 200,000
hours worked.
PRODUCTION BY MINE
3 months % 9 months %
ended Sep 30, change ended Sep 30, change
2019 2018 2019 2018
GOLD EQ. (KOZ)1
Kyzyl 94 10 NM 253 10 NM
Dukat 75 77 -2% 233 231 +1%
Albazino-Amursk 75 88 -15% 211 241 -12%
Omolon 49 50 -3% 148 136 +8%
Mayskoye 72 47 +52% 76 47 +62%
Varvara 37 37 -1% 113 103 +10%
Voro 28 23 +20% 85 78 +9%
Svetloye 46 59 -22% 107 112 -4%
TOTAL 476 392 +21% 1,227 959 +28%
(continuing
operations)
Okhotsk - 44 NA - 68 NA
Kapan - 11 NA 5 38 NA
TOTAL 476 447 +7% 1,232 1,066 +16%
(including
discontinued
operations)
Notes: (1) Based on 1:80 Ag/Au, 5:1 Cu/Au, 2:1 Pb/Au and 2:1 Zn/Au
conversion ratios.
CONFERENCE CALL AND WEBCAST
Polymetal will hold a conference call and webcast on Thursday, 24 October
2019 at 12:00 London time (14:00 Moscow time).
To participate in the call, please dial:
From the UK:
+44 330 336 9411 (local access)
0800 279 7204 (toll free)
From the US:
+1 929 477 0324 (local access)
800 458 4121 (toll free)
From Russia:
+7 495 646 9190 (local access)
8 10 8002 867 5011 (toll free)
To participate from other countries, please dial any of the local access
numbers listed above.
Conference code: 2360288
To participate in the webcast follow the link:
https://webcasts.eqs.com/polymetal20191024. Please be prepared to introduce
yourself to the moderator or register.
A recording of the call will be available immediately after the call at +44
20 7660 0134 (from the UK), +1 719 457 0820 (from the USA) and 8 10 8002 702
1012 (from Russia), access code 2360288, from 17:30 Moscow time Thursday, 24
October, till 17:30 Moscow time Thursday, 31 October, 2019. Webcast replay
will be available on Polymetal's website (www.polymetalinternational.com
[1]) and at https://webcasts.eqs.com/polymetal20191024.
About Polymetal
Polymetal International (LSE, MOEX: POLY, ADR: AUCOY) (together with its
subsidiaries - "Polymetal", the "Company", or the "Group") is the top-20
global gold producer and top-5 global silver producer with assets in Russia
and Kazakhstan. The Company combines strong growth with a robust dividend
yield.
Enquiries
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Consulting 1000
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+7 812 334 3666 (Russia)
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Kuznetsov
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Morgan +44 20 7425 RBC +44 20 7653 4000
Stanley 8000 Europe
Limited
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Foster Marcus
Jackson
Richard
Brown Jamil
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Panmure
Gordon +44 20 7886
2500
Charles
Lesser
James
Stearns
Forward-looking statements
This release may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements speak only as
at the date of this release. These forward-looking statements can be
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expressed or implied by such forward-looking statements. Such
forward-looking statements are based on numerous assumptions regarding the
company's present and future business strategies and the environment in
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not guarantees of future performance. There are many factors that could
cause the company's actual results, performance or achievements to differ
materially from those expressed in such forward-looking statements. The
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